How employers can reduce risk while creating a positive event experience for everyone

How employers can reduce risk while creating a positive event experience for everyone

Company events are a great way to recognize your team, celebrate wins, and build connections outside of daily work. These can include client appreciation receptions, milestone celebrations, or seasonal gatherings. Many employers plan end-of-year parties with alcohol available, especially around the holidays.

Whenever alcohol is served at a company event, several risks must be considered. Even if the event is off-site or outside normal hours, what happens can still affect your workplace, culture, employees’ comfort, and your potential liability.

This blog walks through the key risks to be aware of and practical steps you can take to help keep your celebrations safe, inclusive, and aligned with your policies.

The risks of serving alcohol at company events

Allowing employees to drink at a company event can seem harmless, especially if you trust your team. Still, alcohol changes behavior and judgment, which may increase the risk of:

• Safety issues and accidents after the event

For example, impaired driving or other injuries that occur after someone leaves the party.

• Harassment or inappropriate conduct

Alcohol lowers inhibitions, which can lead to unwanted comments, physical contact, or other behavior that may violate your harassment or code of conduct policies.

• Morale, comfort, and inclusion concerns

Not everyone drinks alcohol for health, religious, cultural, or personal reasons, so a party focused on drinking can leave some employees feeling uncomfortable or excluded. If someone becomes intoxicated or misbehaves, it can also make coworkers feel less safe or respected at work after the event.

• Workers’ compensation considerations

In some situations, an injury at or related to a company-sponsored event may lead to a workers’ compensation claim.

• Reputational damage

Photos or videos from the event that show excessive drinking or inappropriate behavior can travel quickly on social media and harm your brand.

Because of these risks, some employers avoid serving alcohol altogether. Others allow it, but only with clear guidelines and safeguards in place.

Learn more:

Five ways PEOs can help businesses mitigate risk effectively

Simple ways to reduce risk

You do not need a complicated plan, but you do need a thoughtful one. Focus on three stages:

1. Before the event

• Review your policies and make sure they apply to company events
• Send a reminder that alcohol may be available and policies remain in effect
• Keep attendance optional
• Prepare managers to model responsible behavior and address concerns calmly

2. During the event

• Serve food and non alcoholic drinks so everyone feels included
• Offer activities so the event does not revolve around drinking
• Check the space for tripping hazards or dim lighting
• Use professional bartenders instead of self-serve options

3. After the event

• Support safe transportation through shuttles, rideshares, or reimbursements
• Shift the tone near the end by closing the bar and offering dessert or coffee

Related resource:

The role of PEOs in crisis management and business continuity

Keep inclusion and comfort in mind

A successful company party is one where everyone feels welcome and at ease. Offering appealing non alcoholic options, avoiding pressure to drink, and encouraging leaders to model responsible behavior all help create a comfortable environment. 

It is also important to respect that some employees may choose not to attend and to offer a mix of alcohol-friendly and alcohol-free celebrations throughout the year. These thoughtful choices support a more inclusive and positive workplace experience for everyone. 

How PER can support you

Worksite managers must understand the importance of proper planning and managing special events. PER supports employers by offering guidance, coaching, and clarity in key areas, including:

• Reviewing and strengthening policies related to conduct and alcohol
• Helping draft clear guidelines and pre-event reminders
• Providing coaching on how managers can address concerns appropriately
• Talking through questions around comfort, morale, and workers’ compensation considerations
• Ensuring your approach aligns with your overall HR strategy

With the proper preparation and support, company celebrations can stay enjoyable, professional, and comfortable for everyone.

Need HR guidance before your next workplace event?

Connect with us today!